1 min read.Updated: 04 Jun 2021, 05:25 AM ISTNeil Borate
A note released by Franklin Templeton Mutual Fund showed that ₹2,642 was accumulated in the 6 schemes as of 31st May, a figure that would have increased to around ₹2,900 crore in the first week of June
SBI Mutual Fund will disburse around ₹2,900 crore to investors who had put their money in the six Franklin Templeton debt schemes that were wound up on 23 April 2020, two people with knowledge of the matter said.
A statement released by Franklin Templeton Mutual Fund had said that ₹2,642 was accumulated in the six debt schemes as on 31 May. The amount would have increased to around ₹2,900 crore in the first week of June, the people cited above said, adding that the process will be completed in the coming week.
The six debt schemes of Franklin Templeton Mutual Fund with assets of around ₹26,000 crore were frozen on 23 April last year after facing unprecedented redemptions. Following extensive litigation, the Supreme Court had placed SBI Mutual Fund in charge of the winding up of the schemes in February 2021. The fund has already released a sum of ₹14,572 crore as on 31 May in tranches.
With the proposed disbursal, investors will get around ₹17,500 crore out of the total corpus. Repayments, however, vary from one scheme to the other. While 71% of the assets under management for Franklin India Ultra Short Term Bond Fund as on 31 May has been returned to investors, only 25% of Franklin India Income Opportunities Fund has been repaid, a note from Franklin Templeton showed.